America Slouching Towards Fiscal Armageddon

by Chris Banescu –
America is in grave danger. Our government’s out-of-control spending and our politicians’ refusal to implement meaningful budget reforms are leading us towards a fiscal crisis that can undermine our very way of life. We are spending ourselves into oblivion. With each passing day, we are $5 billion in deficit spending closer to the edge of an abyss that can cripple our economy, destroy America’s wealth, and lead to catastrophic social consequences for all current and future generations. Yet our leaders in Washington refuse to face reality and continue to play political games while the country’s budget crisis deepens and the threat grows exponentially.

In February of this year the US federal budget deficit grew by a record $224 billion; the biggest one-month increase in history. Worse still, the 2011 US budget deficit is forecast to reach $1.5 Trillion. According to the non-partisan Congressional Budget Office (CBO) this annual deficit represents the largest budget gap in our country’s history, equivalent to approximately 10% of America’s total economic output. This follows the enormous $1.3 Trillion deficit racked up for 2010 and will be superseded by an equally disturbing $1.65 Trillion deficit forecast for 2012.

In just three short years, Obama and the Democrats have racked up a whopping $4.5 Trillion in debt. That is more than double the $2.1 Trillion in debt added during the entire eight years of the Bush administration. It’s an astronomical increase in deficit spending of roughly 571%; that’s nearly six (6) times faster than previous administrations.

With Congress unwilling to address the runaway spending, roughly half the money the federal government now spends it has to borrow. Approximately 40 cents out of every dollar in spending is financed by mortgaging our future to foreign investors, primarily China. For 2012, the deficit spending will increase to 45 cents per dollar. Each day America will add another $4.5 billion to the $14.3 Trillion total National Debt. Sometime between now and 2012 the US debt will equal the country’s Gross Domestic Product (GDP), the total market value of all the goods and services in our economy for an entire year.